Exit from Chinese assets accelerates

The outflow, which was $2.1 billion in September, reached $8.8 billion from Chinese assets in October, according to the Institute of International Finance data. While the harsh COVID-19 measures in China have caused great damage to economic growth, investors' outflow from Chinese assets is also accelerating. According to the Institute of International Finance data, foreign investors made an $8.8 billion outflow from Chinese assets in October. This outflow was $2.1 billion in September. In October, there was an outflow of $7.6 billion in Chinese stocks and $1.2 billion in bonds. While concerns about virus measures are still affecting the Chinese market, Chinese authorities first announced that the quarantine around the largest iPhone production facility in the Zhengzhou region had been lifted as planned. However, it was later stated that the facility was still in a "high-risk area" where restrictions were still in place. The impact of COVID-19 measures is also observed in macro data. Producer prices in China fell by 1.3 percent in October, confirming that pandemic measures have brought economic activity to a standstill. Consumer prices in China, on the other hand, increased by only 2.1 percent annually, despite the global inflation trend.